Property Valuation
The principle of anticipation in real estate valuation means that a property's value reflects:
AIts historical use and past income
BThe present value of the future benefits expected from property ownership✓ Correct
CThe current replacement cost
DThe most recent comparable sale
Explanation
The principle of anticipation holds that value is created by the expectation of future benefits. In the income approach, an investor values a property based on the present value of expected future income and appreciation — not past performance.
Related Tennessee Property Valuation Questions
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